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Net Income $5,000 Depreciation 2,500 increase in deferred tax liabilities 500 Decrease in account receivable   ...

Net Income $5,000

Depreciation 2,500

increase in deferred tax liabilities 500

Decrease in account receivable    2,000

increase inventories 9,000

Decrease in Account Payable 5,000

increase in accrued liabilities 1,000

increase in property and equipment 14,000

increase in short term notes   19,000

decrease in long term bonds 4,000

Use the information above to answer the questions below

  1. What is the net cash flow from operating activities

  2. What is the net cash flow from investing activities

  3. What is the net cash flow from financing activities?

  4. What is the change in cash?

Solutions

Expert Solution

Cash Flow from Operating Activity
Particulars Amount
Net Income 5000
Add: Depreciation 2500
Add: Increase in Deffered Tax Liab. 500
Add: Decrease in Accounts recievable 2000
Add: Increase in Accrued Liab 1000
Less: Increase in Inventory 9000
Less: Decrease in Account Payable 5000 -8000
Net Cash Flows from operating Activities -3000
Cash Flow from Investing Activity
Particulars Amount
Increase in property & equipment -14000
Net Cash Flows from Investing Activities -14000
Cash Flow from Financing Activity
Particulars Amount
Increase in Short Term Notes 19000
Less Decrease in Long Term Bonds 4000
Net Cash Flows from Financing Activities 15000
Change in Cash
Particulars Amount
Net Cash Flows from operating Activities -3000
Add: Net Cash Flows from Investing Activities -14000
Add: Net Cash Flows from Financing Activities 15000
Change in Cash -2000

jeff jeffy answered 1 year ago
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